*Returns are assumed at 10% across the product to show the impact of taxation on
capital gains from Debt mutual funds and income from Fixed Deposits

Cost Inflation index for last 3 years:

2012-2013

852

2011-2012

785

2010-2011

711

Assuming the investments are for 3yrs starting the financial year 2010-11

^ Gross return before expenses. Interest calculation is assumed on yearly cumulative
basis. The tax rate is assumed at the highest rate based on the current tax slabs.
Please consult your tax advisor for tax implication & further details. Interest
rate on Fixed Deposits and Debt Funds is assumed as 10% for the purpose of calculating
Annualized Returns and the actual returns may vary depending upon the prevalent
market conditions and rates. Applicability of any change in income tax rates may
affect post tax returns significantly.

Cost Inflation Index is based on CII for the investment year and the year of redemption
(Year of redemption -2012-2013 – CII=852, Year of investment 2010-2011 –
CII=711).

# Taxable income is Zero as the Indexed Cost of Acquisition Rs. 1,34,810 is greater
than the maturity value of Rs. 1,33,100.

What are FMPs?

A fixed maturity plan (FMP) is a closed-ended debt scheme, wherein the duration
of debt papers is aligned with the tenure of the scheme. So a one-year FMP will
invest in debt instruments that mature in one year or just before this period. This
synchronized maturing minimizes the interest rate or reinvestment risk and thereby
benefit from the interest rates accrual to the fixed tenure. Ideal for investors
looking for investing for a fixed time period and minimize the interest rate risk
on their investments.

Why should one invest in FMPs?

Fixed Maturity Plans provide the below given benefits:

Lower interest rate risk as it predominantly invests in debt securities matching
the maturity of the plan

Tax efficient returns as compared to interest income from Fixed Deposits for investors
falling in higher tax brackets